Language man

I was asked if I believe whether Australia needs “innovation”; my response…

I believe it mostly turns on what is meant by “need.” If need is defined as an immediate operational requirement, Australia does not need innovation in this sense. 

The system continues to clear its constraints using rents, imports of complexity, population growth, and asset inflation. Behaviour follows that reality, which is why innovation is discussed aspirationally rather than acted on as a necessity.

If need is defined instead as long-run resilience or insurance against regime change, then the statement becomes true but in a different sense.

In this framing, innovation is not required for today’s equilibrium, but it reduces future adjustment costs if external conditions shift. The lack of clarity is therefore semantic before it is strategic. 

Dalby’s description of coordination failures are real, but they are downstream effects of a system that has not yet been forced to treat innovation as binding. 

Without that pressure, coordination agendas predictably drift toward signalling, institutional reshuffling, and funding narratives rather than altered incentives or behaviour.

Government intervention tends to amplify the symptoms Dalby describes rather than resolve them. Public programs substitute grants for customers, compliance for conviction, and process for product. 

They reward narrative coherence and institutional survival rather than market discovery. This is why coordination frameworks so often collapse into make-work. 

They assume the problem is misalignment between actors, when in reality the problem is the absence of a pressure gradient that would make alignment unavoidable.

So the core point is not anti-innovation or anti-government in principle. It is that innovation only emerges endogenously when constraints bite. 

Until then, government efforts mostly reshuffle incentives at the margin, create careers around administration, and give the appearance of motion without changing underlying behaviour. 

Using the word “need” as if it were present tense invites precisely thecategory error I would prefer to avoid. It turns out we are trapped in a language that lacks a mandatory grammatical distinction between binding necessity and contingent necessity.